Captive automotive dealer support financiers would highly unlikely request additional and/or implied financial products such as ext warranties, L&D or LOE insurances on the submitted conditional sales contract.

This sounds more like the F&I manager using suggestive selling tactics to increase his ext warranty penetration

Even if your credit was marginal (if the F&I manager skates around verbage suggesting security etc) the financier would request further cap cost reduction vs add-ons

you should call the 'bank' directly and ask them....
what type of credit do you have?

Which car dealership is this?

The only reason a bank would ask for anything is to protect the asset on which they are lending... can you ask other car dealers what thye would do?

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Desjardins

Trust me when I tell you this. If you have any doubt when it comes to buying a car at a dealership, walkaway, and go somewhere else. Better safe then sorry. If you really want to challenge the salesman, ask him where is the document that requires this extended warranty ? Conditional sales contract ?

Just curious, who is the lending institution ?

I agree with this however I am suspecting that the dealer is trying to trick me because of two things. The car will be covered for the first 5 years under the manufacturer warranty, so the extended warranty will only kick in for the last two, and when they originally called, they told me that I was required to get the extended warranty as well as rust protection and upholstery protection, but when I said that I wasn't happy about this, they talked to "the owner" and dropped all but the warranty. Wouldn't they need to talk to the bank?

Just remember one thing Macd. If you default on your payments, The bank still needs to protect their investment. There may be some truth to chaps thought. Did you not ask why ? The only time a situation is fishy is when someone is not willing to explain the reason why, And if you really think about it. What's wrong with having an extended warranty ?

The day you decide to cash in on it, you won't even think twice. It may also be a salesman trying to pull the wool over your eyes. If that is what you are really worried about, then pick up the phone and ask a couple dealers.

Make sure they are using the same finance company. Every financial institution will have their own policies and procedures. Your dilemma is a classic "1st world problem". I wouldn't lose any sleep over it...

Macd, maybe you could shed a little more detail. For starters, were you applying for something like a 5yr loan but the car only had a 3yr warranty? If so, perhaps that's why they wanted the extended warranty? Just a thought.

Definitely sound like something is up,i would try somewhere else if that is what they are up to.

I recently applied for a new car loan, but was told that the bank would only approve it if I added on an extended warranty to the purchase. This sounded fishy to me. Is this a real thing?